According to Fire Chief Joe Clow the auditor's preliminary draft report found all was in order.

Clow said the report presented at the commissioners meeting Monday stated, "We meet all recommendations (from the 2010 report). All of the recommendations from the finding were satisfied."

The report addressed a 2010 finding that the district "did not comply with state purchasing laws or conflict of interest laws when purchasing a modular home."

The preliminary draft report presented Monday stated, "In the areas we examined, the District's internal controls were adequate to safeguard public assets. The District also complied with state laws and regulations and its own policies and procedures in the areas we examined."

The chief said there was one exit item presented in the report.

"We recommend all agreed upon changes to personal service contracts are documented and Board approved as amendments to the original contract," the report stated.

The district has received considerable criticism concerning the modular home finding in 2010. The district paid $85,000 for the home, which was to be used as a fire station. The home belonged to a spouse of the commissioner, according to the 2010 report.

The finding stated the problem was the district did not obtain bids and there was no "formal agreement or resolution" for reimbursement payments.

The 2010 finding stated the commissioners believed the structure was real property and did not require bids.

The auditor recommended the district establish "policies and procedures" that follow state bid laws and ethics laws. The report also recommended the district consult with legal counsel regarding the modular home purchase.

According to Clow all the recommendations have been satisfied.

"The report shows that the only thing questionable was the purchase of the modular home," Clow said. "We acted on that and there is nothing else that is illegal or wrong. We want everyone to know we are trying to do what is best for our customers."

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